Developers have recently felt the impact of the direct remittance of GST payments from buyers to the ATO. The consequence of this has been significant where the BAS lodgement history has been poor or where the GST planning has resulted in a significant liability at the end of the project.
Where a developer is banking or budgeting on retaining the GST for the viability of a project then there will be significant risk of financial difficulties, especially where they are required to catch up a large number of BAS in order to receive a refund. It is not uncommon for the Commissioner to closely scrutinise returns where there is a refund (as will be the case for where the payment is made direct to the Commissioner), especially if the compliance history is poor.
As you are coming to the end of a project it is important to be in control of your GST position and even more important that things are up to date. Chat with us if you are looking for guidance on what your GST liability may look like and how you can manage it.
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